After receiving deceiving data from the American job market, the EUR/USD had a big spike up to 1.4498 at 11.25 am on Friday. This is due to good ISM data published in the Eurozone and Germany:
Eurozone PMI Composite for May 56 vs 55.4 forecasted
German PMI Composite for May 56.1 vs 54.9 forecasted
This data suggests there is an underlying expansionary economic activity. If the data from the US comes less than expected, the EUR/USD will probably take off from the actual level. One must keep in mind the news coming from the USA: the recent poor job report, Moody's expected lower rating on Washington' debt. In such a morose environment, only bad signals from the European periphery/ better than expected data from the US could reverse the actual trend in the EUR/USD.
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